Comptroller Fiscal Year Memo Letter Head


M E M O R A N D U M

To:Chief Fiscal Officers, MMARS Liaisons, and Payroll Directors
From:Martin J. Benison, Comptroller
Date:July 12, 2010
Re:Qualified Transportation Benefits Program (QTBP) Phase 2

Comptroller Memo
FY#2011-03

Executive Summary

The Commonwealth is implementing a pre-tax program to provide a full option Qualified Transportation Benefit Program (QTBP) under IRS Code 132(f).

This new and improved program will expand parking options to currently enrolled employees with Transit benefits and, for the first time, will provide expanded transit options to employees in addition to the MBTA. Enrollments of current and new employees into expanded Transit and Parking pre-tax benefits is now underway with July HR/CMS deductions being taken for August purchases.










Enhancements to the Qualified Transportation Benefits Program (QTBP)

Background:

The QTBP (Qualified Transportation Benefit Program) started with the conversion of the former MBTA pass program to a new transit program. The conversion was successful and provided some enrollment process experience. Implementation issues have been resolved by the vendor. Now that the transition phase is complete, the Commonwealth is rolling out Phase 2 - increased transit options and parking.

The QTBP plan maximizes pre-tax transportation benefits not previously available to employees.

Departments in the executive branch are paying the cost of the administrative fee of participants beginning with August deductions. There is a fee of $1.50 monthly to the employee. The reimbursement of that $1.50 fee will be charged to the department appropriations based on the employee's labor distribution. Independent and Constitutional Offices may choose this option also, or have the QTBP paid directly from the employee with no reimbursement.

See the attached list of Frequently Asked Questions (FAQ's) for more details on the benefits of the new program. Employees can sign up online at http://www.Benstrat.com.

The new QTBP options include:

  • Transit pass purchases from regional and private transportation companies
  • Out-of-state transit program benefits
  • Van pool costs
  • Parking costs.

For definitions of eligible options please see Publication 15-B (2010), Employer's Tax Guide to Fringe Benefits.

Please contact Kevin McHugh at Kevin.McHugh@state.ma.us if you have any questions.



Enclosure: Qualified Transportation Benefits Program (QTBP) doc format of 2011 QTBP QA final.doc





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